Oxford Lane Capital Corp. announces the net asset value and

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GREENWICH, Connecticut, May 11, 2021 (GLOBE NEWSWIRE) – Oxford Lane Capital Corp. (NasdaqGS: OXLC) (NasdaqGS: OXLCM) (NasdaqGS: OXLCP) (NasdaqGS: OXLCL) (“Oxford Lane”, the “Company,” “we” or “our”) today announced the results following financial and related information:

  • On April 29, 2021, our Board of Directors declared the following distributions on our common shares:
End of the month Registration Date Payment date Amount per share
July 31, 2021 July 16, 2021 July 30, 2021 $ 0.0675
August 31, 2021 August 17, 2021 August 31, 2021 $ 0.0675
September 30, 2021 September 16, 2021 September 30, 2021 $ 0.0675
  • The net asset value (“NAV”) per share as at March 31, 2021 was $ 5.94, compared to a NAV per share as at December 31, 2020 of $ 5.44.
  • Net investment income (“NII”), calculated in accordance with generally accepted accounting principles (“GAAP”), was approximately $ 21.6 million, or $ 0.23 per share, for the quarter ended March 31. 2021.
  • Our basic net investment income (“Core NII”) was approximately $ 44.9 million, or $ 0.47 per share, for the quarter ended March 31, 2021.
    • The Basic NII represents the adjusted NII of any applicable additional cash distributions received, or which may be received (if any, in either case), on our Equity Loan Guaranteed Investments (“CLO”). See additional information under “Additional Information Regarding Net Income from Core Investments” below.
    • We point out that our taxable income may differ materially from our GAAP NII and / or our Core NII, and that neither GAAP NII nor Core NII should be relied on as indicators of our taxable income.
  • Total investment income for the fourth quarter was approximately $ 36.1 million, an increase of approximately $ 4.7 million from the quarter ended December 31, 2020.
    • For the quarter ended March 31, 2021, we recognized the investment income of our portfolio as follows:
      • $ 34.7 million from our investments in CLO shares, and
      • $ 1.4 million from our investments in CLO debt and other income.
  • Our total expenses for the quarter ended March 31, 2021 were approximately $ 14.5 million, compared to total expenses of approximately $ 12.5 million for the quarter ended December 31, 2020.
  • As of March 31, 2021, the following metrics applied (note that none of these metrics represented total shareholder return):
    • The weighted average return on our CLO debt investments at current cost is 11.2%, compared to 10.5% at December 31, 2020.
    • The weighted average effective return on our investments in CLO shares at current cost is 15.7%, compared to 14.5% at December 31, 2020.
    • The weighted average return on cash distributions of our investments in CLO shares at current cost was 23.8%, compared to 22.2% as at December 31, 2020.
  • For the quarter ended March 31, 2021, we recorded a net increase in net assets from operations of approximately $ 61.4 million, or $ 0.65 per share, consisting of:
    • NII of approximately $ 21.6 million;
    • Net realized losses of approximately $ 2.1 million; and
    • Unrealized net capital gain of approximately $ 41.9 million.
  • During the quarter ended March 31, 2021, we made additional investments of approximately $ 175.9 million and received approximately $ 62.5 million from sales and repayments of our investments in CLOs.
  • For the quarter ended March 31, 2021, we issued a total of approximately 7.2 million common shares under a “to market” offering. After deducting the selling agent’s commissions and offering fees, this resulted in net proceeds of approximately $ 46.4 million. As of March 31, 2021, we had approximately 100.5 million common shares outstanding.
  • On April 15, 2021 (the “Redemption Date”), the Fund redeemed all outstanding Forward Preferred Shares Series 2023 at a redemption price of $ 25 per share of Forward Preferred Shares Series 2023, plus a amount equal to all accrued and unpaid dividends. and distributions on each share accrued up to (but excluding) the redemption date.

On April 29, 2021, our Board of Directors declared the required monthly dividends on our 6.75% Series 2024 Term Preferred Shares (the “Series 2024 Term Preferred Shares”) and our Series 2024 Term Preferred Shares. 2027 at 6.25% (the “Series 2027 Term Preferred Shares”) (each, one “Share”) as follows:

Prefer
Actions
Type
Dividend per share
Stated amount
Registration dates Payment dates
2024 series $ 0.140625 June 16, 2021, July 16, 2021, August 17, 2021 June 30, 2021, July 30, 2021, August 31, 2021
2027 series $ 0.130208 June 16, 2021, July 16, 2021, August 17, 2021 June 30, 2021, July 30, 2021, August 31, 2021

In accordance with their terms, each of the Series 2024 Forward Preferred Shares and Series 2027 Forward Preferred Shares will pay a monthly dividend at a fixed rate of 6.75% and 6.25%, respectively, of the liquidation preference of $ 25.00 per share, or $ 1.6875 and $ 1.5625. per share per year, respectively. This fixed annual dividend rate may be adjusted in certain circumstances, but in no event will be less than 6.75% and 6.25% per annum, respectively, for each of the Term Preferred Shares Series 2024 and the Preferred Shares Series 2024. series term 2027.

Additional Information Regarding Basic Net Investment Income

We provide information relating to Core NII (a non-GAAP measure) on an additional basis. This measure is not provided as a replacement for GAAP NII, but as a supplement to it. Our non-GAAP measures may differ from similar measures of other companies, although similar terms are used to identify such measures. The Core NII represents the GAAP NII, adjusted for any applicable additional cash distributions received, or receivable (if any, in either case), on our investments in CLO shares. OXLC’s management uses this information in its internal analysis of results and believes that this information may be informative in assessing the quality of OXLC’s financial performance, identifying trends in its results and providing meaningful comparisons from period to period. ‘other.

Income from investments in securities in the “equity” category of CLO vehicles, for GAAP purposes, is recorded using the effective interest rate method; this is based on an actual expected return on reimbursement using estimated cash flows, at current cost, including investments in CLO shares that have not made their inaugural distribution by the end of the relevant period. The result is an effective return for the investment in which the difference between the cash actually received, or distributions that can be received, and the calculation of the effective return is adjusted at cost. Accordingly, investment income recognized on CLO equity securities in the GAAP income statement differs from cash distributions actually received by the Company during the period (referred to below as “CLO equity adjustments”). .

In addition, in order for the Company to continue to qualify as a Regulated Investment Company (“RIC”) for tax purposes, we are required, among other things, to distribute at least 90% of our company’s taxable income from investment every year. Therefore, Core NII may provide a better indication of our estimated taxable income for a reporting period than GAAP NII; however, we cannot guarantee that this will be the case, as the ultimate tax character of our profits can only be determined after the preparation of the tax returns at the end of a financial year. We note that this non-GAAP measure may not serve as a useful indicator of taxable profit, particularly during times of market disruption and volatility, and as such our taxable profit may differ materially from our Core NII.

The following table presents a reconciliation of GAAP NII and Core NII for the three months ended March 31, 2021:

Three months ended
March 31, 2021
Quantity Per share
Quantity
GAAP Net investment income ………………………………………… $ 21,645,164 $ 0.23
CLO equity adjustments ………………………………………. ……… $ 23,222,368 $ 0.24
Basic net investment income ……………………………………………… $ 44,867,532 $ 0.47

We will host a conference call to discuss our fiscal fourth quarter results today, Tuesday, May 11, 2021 at 9 a.m. ET. Please dial 1-844-792-3730 to participate. A recording of the conference call will be available for replay for approximately 30 days after the call. The replay number is 1-877-344-7529, and the replay passcode is 10156439.

A presentation containing further details regarding our quarterly operating results has been posted in the Investor Relations section of our website at www.oxfordlanecapital.com.

About Oxford Lane Capital Corp.

Oxford Lane Capital Corp. is a registered and publicly traded closed-end management investment company that invests primarily in debt and equity tranches of secured loan bond (“CLO”) vehicles. CLO investments can also include warehouses, which are financing structures intended to aggregate loans that can be used to form the basis of a CLO vehicle.

Forward-looking statements

This press release contains forward-looking statements subject to the uncertainties inherent in predicting future results and conditions. All statements that are not statements of historical fact (including statements containing the words “belief”, “plans”, “anticipates”, “expects”, “estimates” and similar expressions) should also be considered to be forward-looking statements. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties, including the impact of COVID-19 and related changes in base interest rates and the significant market volatility in our business, our CLO investments, our industry and the global economy. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We do not undertake to update these statements to reflect subsequent events, except as required by law.

Contact:
Bruce rubin
203-983-5280

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